1. Field of the Invention
The invention relates to debit and credit cards; and, more particularly, for a reward program for cash replacement cards, such as debit and credit cards.
2. Related Art
Credit cards used in place of cash to make purchases are extremely popular. Initially, credit cards enabled one to delay payment until the bill for the purchases reached the card user. The user then had to option to pay off the balance owed within a preset time without incurring interest charges, or delaying full payment by making a partial payment thereby incurring interest charges on the unpaid balance.
Some time after the introduction of such credit cards, some credit card companies came up with plans to reward the purchaser each time he or she made a purchase. For example, frequent flyer programs associated with some credit cards reward the purchaser with airline mileage that can be redeemed with air travel.
Recently, some credit card issuers began rebating a certain dollar amount to the purchaser, such as 1% to 2% of purchases, rebated to the purchaser at a predetermined time after payment of charges by the purchaser.
These are generally referred to as cash back credit card programs. The more one uses the card, the more cash rewards one receives. Some programs pay a fixed percentage, such as 5%, on certain types of purchases, and a lesser percentage, such as 1% on all other purchases, regarding the amount spent.
Other programs may offer gift certificates or coupons, rebates on gasoline purchases, etc. Thus, cash back programs generally involve 3 basic components—a percentage earned on purchases, expenditures in certain categories sometimes being rewarded at higher rates, and the way the rewards are delivered to the purchaser.
Such cards may or may not have an annual fee and are used throughout the world.
There are also cards called debit cards that are used as cash at the time of purchase. That is, one pays for a commodity with such debit card, and the amount is automatically deducted from one's account.
Such cards thus return a certain monetary value that is fixed in value at the time the rebate is made. There is need for a cash replacement card, such as a debit or credit card, that provides a rebate to the purchaser in the form of a known commodity that traditionally increases in value and is highly desirable to the purchaser.